Let's face it, everyone is talking about crypto at the moment! People are becoming millionaires, even more people are getting scammed and everyones crusty old uncle has become a crypto guru. Last Christmas he was a creep with serious pedo vibes, no one makes that kind of miraculous transformation.
What The F**ck is Crypto? Dummies Guide to Cryptocurrency Table of Contents
So What is Crypto?
Remember that classmate from high school? The one who never had a pen, and you'd have sworn never paid a lick of attention? Who could ever imagine that he would leave school without a single GCSE and still become successful? Today, he's probably lounging in a plush armchair, confidently calling himself an investor and smugly recounting tales of his crypto gains.
Astonishing, isn't it? How did this seemingly unprepared individual understand the ins and outs of this complex technology, and why don't you?
Dive in with me, as we uncover the mysteries of cryptocurrency. Crypto, in the simplest terms, is a revolutionary form of digital currency. It's designed to function as a medium of exchange across a computerized network, completely independent from any central authority. Unlike your traditional pound or dollar, which relies on the government or bank for its value and regulation, crypto dances to its own beat. That's its unique allure.
But don't fret, we've got you covered! We've meticulously crafted the ultimate guide to cryptocurrency, to ensure that your eyes don't start glazing over whenever the word "Bitcoin" surfaces in conversation.
And speaking of Bitcoin, it's the ideal starting point for your crypto journey. Dive in and unlock the world of digital currency, where even the most unlikely characters can find success!
What is Bitcoin?
Bitcoin is a digital currency created in 2009! It is one of the most popular cryptocurrencies and you’ve probably heard someone talking about it like they are some kind of expert. Truth is they’re probably not!
What is a Stablecoin?
Some crypto projects are scams, with no real value an no way to get you money back once it's lost. The value of the coin is usually artificially inflated once the project goes live, tricking people into buying it, whilst the creator run off with your money.
One way to protect yourself is to invest in a Stablecoin. Now you're probably wondering what a stable coin is?
A Stablecoin is a cryptocurrency that has it's price aligned to another cryptocurrency, fiat money (such as the pound or dollar) or any other commodity that is trade on an exchange. This makes the price of the cryptocurrency, less volatile making it less risky to invest in. This is why it is called a Stablecoin.
What Are The Benefits of Stablecoins?
With Stablecoins you don't get the wild up and down price swings of other cryptocurrencies, this is because it's price is pegged to an external asset. Some of the benefits of Stablecoins are:
- They are global, accessible and open to anyone on the internet, 24/7
- They are easy and quick to transmit
- Stablecoins are digitally native
What Can Stablecoins Be Used For?
- Trading or Savings: Investing Stablecoins is really easy and doesn't require you to have a bank account. Plus if you want to sell them and buy your dream house, it is usually very easy
- Earn Interest: You can usually earn more interest on your Stablecoin than you would get in a traditional savings account with your bank
- Sending Money Internationally: Stablecoins can be a really cheap way of sending money around the world without having to pay those really high exchange rate fees.
What Are the Most Popular Types of Stablecoin?
Tether (USDT) was originally called Realcoin and was founded all the way back in 2014, it feels like ages in 'cryptotime'. Each Tether coin is equal to roughly one US dollar, this is what makes it a Stablecoin. This means that your Tether (USDT) can pretty much always be traded for U.S dollars whenever you need some extra money.
Dai is another Stablecoin but instead of being matched to the US dollar, it is aligned to the Ethereum cryptocurrency instead.
Binance USD (BUSD)
With a global market captilisation of $14 billion, Binance USD (BUSD) is the third largest Stablecoin in the world. What makes it even more interesting is that Binance USD (BUSD) was greenlisted by the New York State Department in 2020, giving it the regulatory greenlight!
What are the most popular types of Crypto?
Now you're all clued up on Stablecoins, you're probably wonder what the most popular types of cryptocurrency are right?
What is Bitcoin?
Bitcoin was born all the way back in 2009 and is pretty much the most popular cryptocurrency at the moment. Bitcoin is a decentralised digital currency, this means that it is not regulated by any Government body or organisation. People love Bitcoin as it is not controlled by some power hungry state and offers some of the traditional benefits of fiat currency (USD, GBP, Euro...) but with lower transaction fees.
What is Ethereum?
Ethereum powers a lot of the NFT projects that you've probably heard of. It is a decentralised platform that allows people to build dApps (decentralised applications) and smart contracts without any downtime, fraud or third party interference.
What is Litecoin?
If you think of Bitcoin as a gold coin, then Litecoin would be a shiny silver one. It was created by a former Google Engineer, Charlie Lee. People love Litecoin as it has a faster transaction confirmation time as it has faster block generation powers! The vision of Litecoin is to become an open-source global payment network that isn't controlled by any organisation or authority.
What is Cardano (ADA)?
Cardano was created by one of the five founding members of Ethereum, Charles Hoskinson. It aims to replace Ethereum and become the world's leading financial operating system.
What is Solana?
Solana is the next evolution of cryptocurrencies. It is highly functional, permissionless and high-speed, providing all these benefits whilst still keeping transaction costs as low as possible. The Solana cryptocurrency is called DOL.
What is Dodgecoin?
You've probably seen memes of Dodgecoin all over the internet, with is Shibu Inu dog logo. It's the 13th largest cryptocurrency and was originally founded as a joke...imagine that!
What is Tether?
Tether is one of the most popular Stablecoins. It has it's value aligned with the USD, making it price much more stable that other alt coins.
How do people make money from crypto?
Instagram is full of crypto "millionaires"! A lot of people made, a lot of money buying crypto like bit coin when it was really cheap. We’re talking $50 a coin cheap, and now it…wait for it…$45,000
Just imaging buying 1,000 Bitcoin back in the day, it would have been worth over $45,000,000.
Like with most things, you can make money buying and selling cryptocurrency.
How do I trade crypto?
To start buying and selling cryptocurrency you just need two things:
- A Bitcoin wallet, this pretty much acts like a digital version of an old school non-vegan wallet, it stores your cryptocurrency
- An account on a crypto trading platform.
Our Favourite Crypto Wallets
If you're just starting off down the crypto rabbit hole, Coinbase is one of the best crypto wallets for you. It's really secure so you don't need to worry about your crypto being stolen whilst you're sleeping, it's also really easy to use.
They also have a really good education and crypto guide section that can help you learn so much more about cryptocurrency.
If you love using your mobile phone rather than a computer or laptop, then Mycelium crypto wallet might be perfect for you! It has a really big focus on Bitcoin and is known for having really good security features.
Our Favourite Crypto Trading Platforms
These guys definitely deserve another feature when it comes to the best crypto trading platforms. It is a great crypto exchange for beginners and allows you to trade loads of different cryptocurrencies.
If you're looking to trade crypto on your mobile phone, crypto.com is one of our favourite crypto trading platforms, it has an amazing mobile app.
Why do people love crypto?
People love crypto as it feels like the future. No more reckless governments printing money, no more crazy inflation and no more global powers fuel by their reserve currency.
Crypto also give people the who previously felt exclude the chance to own something they feel is valuable.
Take owning a house for example, you would need £70,000 to £200,000 if you wanted to buy a house with a traditional mortgage.
Oh and then you’d still then be paying off your mortgage for the next 30 years…sounds crazy doesn’t it